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Behold! The 'Visible' Algo Hand Of Crude Oil "Spoofing"
Since regulators are so busy focused on the interest rate, FX, credit derivative, and commodity market manipulations and rigging, we suspect they missed the oh so visible hand of "spoofing" that is occurring today in Crude Oil. As Nanex so brilliantly exposes (once again), large orders 'spoof' the depth of the market before disappearing entirely as liquidity approaches and demands a trade...
Crude Oil spoof algo placed 100-lot order sizes 69 times on the offer side between 10:49 and 11:34 $CL_F
— Eric Scott Hunsader (@nanexllc) January 9, 2015
Source: @NanexLLC
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We spoofed some folks
And Nanex has spoof of that.
With the MOUNTAINS of emperical evidence that have piled up regarding market-manipulating HFTs, it should be obvious by now that regulators DO NOT FUCKING CARE. They will NEVER stop it. They WANT it. They are PART of it. They PROFIT from it.
wait...so you're trying to tell me that the market is manipulated & rigged ?! Thanx for ruining my weekend cs'er. WTF. Next are you gonna try tellin' me there is no Santa Clause ? ?
HELLO.....................SEC ? HELLO ........IS ANYBODY THERE ???????
crickets chirping
I bet the SEC would act on tips regarding HFT if porn were included with the e-mails
The SEC's job is not to enforce regulations. It's job is to create the illusion of fair and orderly markets.
How on earth are they going to maintain that illusion if they actually enforce the regulations? The "markets" (and I use the term loosely) would come to a screeching halt.
It's the swing-shift at the SEC... All current players are headed over to Goldman for a player swap... Same as it always was...
Exactly who is the victim of this "spoofing"?
Should traders be required to hold up a sign that says "HEY i'm a DUMB FUCK and I'm comin' to BUY a bunch of oil so please RAISE your price?"
It's funny that HFTs can take advantage of every possible advantage and victimize everyone, but when someone who is probably not an HFT (given how long those orders sat there) posts on the other side of a trade to create a little uncertainty in the market and avoid being gamed, all of a sudden it's horribly illegal and perverse and horrible.
In the market we have today, putting out large orders deep in the order book seems like a perfectly reasonable countermeasure. These orders were at risk of execution had somebody executed a huge sweep order, right? If you told me someone had tried to sweep 8 levels of liquidity and all of a sudden these offers disappeared .00001 seconds before getting hit, that would be one thing, but just taking the risk of actually being filled and sticking large orders out there on the other side of what you are really doing doesn't seem like it is unfair to anyone.
At the same time, placing those LARGE sells, is kind of like saying "Hey look, there is a price ceiling on how high crude can go (today)" and then when that price is reached they can instantaneously cancel them (if they desire a rally, for e.g.) or allow them to go through (if you wanted to send it back the other way).
Bottomline, you can bet everyone is NOT being treated the same, when it comes to this. OK for TBTF to do, but YMMV.
100% agree with your bottom line. The SEC has prosecuted firms for HFT countermeasures calling them "market manipulation."
It all depends on who you are buddies with.
Just this week a CURRENT SEC member argued publicly that a Harvard professor had committed over 100 counts of securities fraud. What was the offense? The prof had argued for corporate governance reform (by putting forward shareholder motions against staggered boards).
Absolutely power corrupts absolutely.
"should be obvious by now that regulators DO NOT FUCKING CARE"
Complicity, my friend. They care because their livlihood relies on it. Their job and the US dollar depends on market manipulation, fake accounting, fraudulent pricing, and commodity price rigging.
Once the truth is exposed, every person at the gov't level will be pursued with a pitchfork, so the manipulation will continue until a greater force of good takes it over. Those within .gov will not come clean until forced to.
"markets" LOFL
... by bending them over a camel
This is the actual terrorisme that is happening against America and most people don’t give fuck.
These are the real guys destroying the country, it’s just weird people cheer at it as so many young people died in the oil wars already.
And now it’s destroying the economy as a hole so it’s actually one of the worst crimes happening yet again.
These guys who do this have your president in their pocket and are spitting on every working American.
People shouldn’t concider this a joke at all. It’s like taking a crap on every grave of every person who died fighting for the wealth of America.
Millions of people are being hurt by this, good hard working people.
Wouldn't this count as commodity rigging?
if you were a small player caught doing this, yes
"Since regulators are so busy focused on the interest rate, FX, credit derivative, and commodity market manipulations and rigging, we suspect they missed the oh so visible hand of "spoofing" that is occurring today in Crude Oil."
Just checking to make sure crude oil is still a commodity. I am going to wait for what alexmark2013 says though since he appears to be a stand in for Tyler.
This 'market' is a joke.
The punchline should be a Doozy.
Hide Not Slide Bitchezz!
SEC has known about it at least publically since 2011 and probably much earlier and has done nothing about it but jaw bone about looking at it, its 2015 BTW.
Who cares about oil? The 'Ramping Hour' in STAWKS fast approacheth...3:30 here we come!!!
It's Friday - i'm gonna get spoos high today. BTFD Friday!!
Spot on
Anything in the name of market efficiency...
So there are a bunch of fake sell orders....that look like liquidity....to do what?
How does the algo benefit here from sell orders with high prices?
ok, so they are trying to get you to do market orders and the sells at lower prices disappear and you execute on high sell prices?
The firms are trying to dump their oil positions higher?
You want capitulation from the buy side so you mass spoof a bunch of sell orders. Typically leery buyers will walk away. You have no intention of actually selling. Suddenly there is buying pressure and you pull your orders, lest you actually sell at a price below what you actually want to.
Who would try to do such a crooked manoeuvre? *cough* Saudi interests *cough*. Sorry, a touch of the flu.
UMM.... XOM... Anyone!?!?
http://finance.yahoo.com/echarts?s=XOM+Interactive#
Isn't trading without money called "paper trading"?
What's the difference here?
Can I set up a brokerage account, fund it, de-fund it, and just place orders and cancel them? I mean that's what this is right?
a chart is worth a ......
I atttended a Regulatory Conference yesterday, best four hour nap you could imagine!
you have to dream about it to know what's in it
You mean there's criminal activity taking place in the open markets ?
YES, free and fair market, fucking insane casino with only russian roulette available
FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD - FRAUD
"You get the gist"
Brent crude $49.51 and U.S. crude $47.74 A Barrel January 9, 2015 at 7:54 pm
Brent crude $50.69 and U.S. crude $48.74 A Barrel January 9, 2015 at 8:51 pm
Was just about to say "wOw that oil is volatile!"
I kid. I kid. I kid.
99% of oil forecasts out there are based on so-called fundamentals. The same “fundamentals” that back in June, when oil cost $107 a barrel, promised even higher prices due to:
Now that oil has fallen below $50, the same sources are giving you “reasons” why it should fall even more.
http://www.globaldeflationnews.com/whats-really-happening-with-oilthe-la...
Regulation is a farce.
10 things the media won’t be talking about after the Paris terror attack
WTF News put the Charlie Hebdo ISIS cartoon in the site header… Because…
my algo can pee further than your algo. lulz
I can just imagine the fortunes being made by the turnover of inside information, totally illegal of course.
ICE changes rules on Jan 14
you fuckers are just jealous.
spoof my nuts you spoofers.
I have no idea what that chart even means. Guess I'll have to use my 2 free years of gov't community college to edumacate myself.
Traders have been "spoofing" markets since there were markets to be spoofed. Pit locals, arbitrage clerks, deck holders, live squawk brokers, your pawn broker, the grocer, electronic trading both exchange and OTC, your local jeweler ..... whatever. Not sure what the point is, but yippie-ay-oh-kayeh for Nanex for spotting phony orders. I'm pretty sure no one reading this gives a good goddam.
It's not a market , it's a tv show with lots of hot money bunnys
Thank goodness we have NANEX to give us some insight on how the "sellside" is going to handle the equity selloff. ;-D
Unfortunately, I think gravity will out~spoof the spoofers.
Yup, I saw those fuckers flash in the ASK on USO myself this afternoon.
So much for Saudis driving oil down. What is really happening is that the Saudis started the downward momentum, however, it is pretty clear that the algos are the ones driving the price of oil lower than it otherwise would be. For now, enjoy cheap gas and the opportunity to buy cheap energy stocks. These same algos can switch around in an instant, and the opportunity to drive oil prices back up by $40 is just too tempting - especially since they can to it regardless of demand or supply.